Oil prices and stock markets rose Monday as investors parsed renewed US-Iran military strikes against ongoing diplomatic efforts. The United States conducted weekend "self-defense" strikes in Iran, while Tehran's Revolutionary Guard retaliated against a US air base after an earlier attack on a communications facility.

Brent crude surged more than 2 percent to approximately $93 a barrel for August delivery, the most actively traded contract. West Texas Intermediate jumped nearly 3 percent to about $90 a barrel. S&P 500 futures pointed to modest gains when US markets reopen. Asian equities showed mixed reactions, with South Korea's KOSPI index climbing 4 percent.

Gasoline prices declined to a national average of $4.34 a gallon Sunday, according to AAA, though they remain 46 percent higher than when the conflict began. Diesel prices pulled back slightly to $5.48 per gallon, maintaining the same 46 percent increase since the war started.

Markets appear to be betting that diplomatic channels will ultimately prevail over military escalation, despite the weekend's intensified exchanges. The oil rally reflects supply disruption concerns rather than panic, suggesting investors expect negotiations to continue.